How to Calculate Carton Consumption, Price, and Costing in the Apparel Industry
Calculating carton consumption, cost, and price is the most essential part for garment merchandisers. In the apparel industry, packing accessories that are used for garment packing during garment shipment are called packing accessories. Various types of packing accessories are used in the garment packing and shipment process. A carton is one of the essential items for the shipment of goods. Buyer-wise packing instruction varies in different orders. Several cartons of ply show how hard and strong it is. This article presents How to Calculate Carton Consumption, Price, and Cost in the Apparel Industry.
Measurement of Cartons for Export Garments:
- Formula in CM (without wastage): (Length + Width) x (Width + Height) x 2 / 100 x 100
- Formula in CM (include wastage): (Length + Width + 6) x (Width + Height + 4) x 2 / 100 x 100
- Carton cost calculation: (Length + Width + Allowance) x (Width + Height + Allowance) x 2 / 10000 x per square rate
As we know, a carton is made by using a plyboard. Ply can be 3ply, 5ply, and 7ply. Higher ply means more hard and strong. A carton is needed to deliver the finished goods to the buyer’s destination. The carton should be strong enough to protect the goods. If the quality of the carton is not good enough, then goods may be damaged during transportation, and buyers will complain about the damaged goods. It is very important that every carton should have two / three-ply boards to increase product safety.
Carton Consumption Calculation Method
Consumption of cartons means “ply board consumption.” As we know, a carton is made by using a plyboard. Before calculating carton consumption or ply board consumption, the merchandiser has to have the following information:
- Length of carton in CM
- Width of carton in CM
- Height of carton in CM
By using the formula below, garment merchandisers can calculate ply board consumption for an order.
Carton Consumption or Ply board Consumption Formula:
(Length + Width + Allowance) x (Width + Height + Allowance) x 2 / 10000
Find the below carton consumption calculation process for example;
Suppose a 5-ply carton has a length of 60 CM, Width of 46 CM, and Height of 28 CM; now calculate the carton consumption or ply board consumption for a 200-piece carton box. Given,
- Length 60 CM
- Width 46 CM
- Height 28 CM
- Total carton – 200 pcs
So, carton consumption or ply consumption (per pcs): (Length + Width + Allowance) x (Width + Height + Allowance) x 2 / 10000
- = (60 + 40 + 6) x (40 + 28 + 4) x 2 / 10000
- = 1.526 square meters per pcs carton
For 200 pcs, total consumption will be (1.526 x 200 = 305 square meters)
Carton cost calculation formula: (Length + Width + Allowance) x (Width + Height + Allowance) x 2 / 10000 x per square rate
For easy understanding, find the costing process below with the example
Suppose seven (7) ply cartons’ length is 65 CM, width 42 CM, and Height 25 CM, and per square rate is $0.85; now find the cost for 200 cartons for an order. Given,
- Length 65 CM
- Width 42 CM
- Height 25 CM
- Per square rate $0.85
So, the cost of a carton (per pcs): (Length + Width + Allowance) x (Width + Height + Allowance) x 2 / 10000 x per square rate
- = (65 + 42 + 6) x (42 + 25 + 4) x 2 / 10000 x $0.85
- = $1.364 / pcs
For 200 pcs, the total cost of the carton is ($1.364 x 200 = $272.8).
Finally, A carton is a mandatory packaging item in the garment industry. So, every merchandiser will need to do carton costing and consumption. Remeber, accurate calculation depends on precise product specifications, negotiation skills for obtaining carton prices and accounting for all related costs.
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